Life insurers start to become more user-friendly and deliver on critical ... This is Money
For life insurance plans, 98 per cent of claims were met with payouts of £1.14 billion.
The figures are based on data from 23 firms, representing 85 per cent of the critical illness market and 90 per cent of the term life insurance sector.
Critical illness policies are designed to protect you from the financial consequences of suffering a serious illness such as a heart attack or cancer. Typically, they pay a tax-free lump sum and major providers include Aviva, Bright Grey, Liverpool Victoria, Scottish Provident and Zurich.
In the past, insurers rejected many of these claims on nondisclosure grounds, often arguing that a policyholder had failed to reveal key medical details at the time they signed up for a policy. But in response to persistent campaigning by Financial Mail, insurers have made improvements to the way they handle claims, distinguishing between intentional and non-intentional non-disclosure.
Insurers have also made an effort to improve the product information for purchasers so they understand more clearly the extent of cover offered by their insurance.
